Regina city council approved a maximum 12.3 per cent fare increase for taxi brokers on Wednesday.
City administration said the change comes in response to feedback from the business owners.
Drivers say the increased fares are needed to help them sustain their businesses as operational costs rise rapidly, especially at the pump.
“By the taxi bylaw, we are entitled to 12.3 per cent,” said Glen Sali of Capital Cabs.
Taxi fares are implemented by the taxi bylaw and are calculated using the “taxi cost fare model.” The model measures specific cost factors that affect the taxi industry based on the consumer price index.
“So I’ve got 10 cars but I’ve only got three on the road because of the gas … I think, ‘yeah, they will be a little bit of happy’ and I’m a hoping some of my drivers would come back and go on the road again,” Bill Singh, Bill’s Taxi owner said of the fare increase.
When asked if the increase in fare would also increase competition with Uber, Singh said that he doesn’t think so. “Like the short trips, you know? If they (Uber) go one or two blocks, they charge $10 anyway. I only make $4 or $5 on it. So we cannot do that because we have a meter which we follow,” he said.
Discussion with taxi brokers began in March of this year to determine if and how an increase to account for rising fuel costs was desired. The model was reviewed and resulted in a proposed eight per cent increase in taxi fares, said Jim Nicol, interim city manager.
Brokers did not decide to move forward with the changes at the time. Then, on June 10, all five taxi brokers wrote to city administration to ask for the increase. During the finalization of the report on Wednesday, the consumer price index was updated, resulting in a 12.3 per cent increase.
As of July 6, only two taxi brokers had given their support to the additional increase because they didn’t have enough time for all the taxi drivers to respond and send a report.
Ward 8 Coun. Shanon Zachidniak voiced her concerns about the impact of rising fares on marginalized groups in the city. She asked if the city offers any kind of support or discount to community members who might be disproportionately impacted.
Once the bylaw is implemented in the next council meeting in August, the initial meter drop rate for the first 120 metres of a trip will be increased to $4.25 from $4. The distance rate will be changed from $0.25 for each additional 138 metres to $0.25 for each additional 127 metres and the rate for taxis hired by the hour will be increased to $39 per hour from $36 per hour.